"The basket price dropped $7.5 between November 15 and December 11," the minister said in a televised statement. Zangeneh noted that 90 percent of this drop, or $6.8, came "during the last 10 working days."

"OPEC is committed to stabilising the basket price around $25 and that is why if the fall continues, the organisation must cut production, in line with its commitments, by 500,000 barrels per day," Zangeneh added.

The Organisation of Petroleum Exporting Countries has raised production levels four times over the past year to try to soften prices, which went above $35 a barrel in recent months, higher than they had been for 10 years.

Prices fell back amid general confidence that Iraq would resume deliveries. OPEC ministers are due to meet January 17 in Vienna.

Iran is OPEC's second biggest producer, with a current output of 3.7 million barrels per day, of which 2.4 million barrels are for export.—AFP.